Case Study On Shell Protection Of ST Landscape Under The Weak Delisting System

It is very obvious that the gap between Chinese stock market and the foreign mature market.It is very universal and special that ST companies use various means to protect the shell.These companies often lack operating capacity,so they maintain their listing status by raising non-recurrent gains and losses.However,the financial data by some means is not the true performance of the company.Such companies should be cleared out of the market as timely as the companies with counterfeited financial data in the mature foreign capital market.Therefore,the paper chooses to study the typical case of Guanghe Landscape Culture Communication Co.,Ltd,ShanXi.(The following referred to as "ST Landscape")That has repeatedly protected shell through asset restructuring,debt restructuring,and impairment preparation.By studying the five whole processes which ST Landscape use various means to guarantee their paper profits,this paper analyzes the shortcomings of the existing demerit system,and explores the possibility of further perfecting the demerit system of stock market in China.ST Landscape is ranked downstream in the industry.It is found that the reason for ST Landscape ’s multiple shell protection is that there are too many lawsuits left over from history,and its main business ability is weak through the analysis.In addition,by analyzing the quantitative analysis of delisting risks and the market’s response to the success of using various means to protect the shell,it is found that avoiding departure temporarily and repeatedly has brought a lot of adverse negative effects to enterprises and markets.Companies such as ST Landscape which fail to maintain their long-term business capabilities,adopt a variety of surplus management measures to maintain their listing status,which seriously not only disrupts the basic function of the stock market survival of the fittest,but also reflects the need for further improvement of the system of delisting and supervision.This paper puts forward constructive opinions in combination with the case study of ST landscape from the aspect of departure system,which help to reduce the phenomenon that ST companies repeatedly take different measures to protect the shell,strengthen the effectiveness of the departure system in our country,and promote the delisting of the poor listed companies normally in our country.